How important is the age of a debt?

One of the most single important factors in determining the validity of the debt is its age. 85% of all accounts are collected within the first 30 days. Another 10% is collected in the next 30 days. Leaving just 5% of the accounts that would generally be assigned to a third-party agency or be written off as bad debt. Statistically the longer the account remains outstanding the less likely it is to be recovered.

You can generally subtract 10% off the recovery scale for each month that remained outstanding after 120 days. Most agencies will generally only work an account for 60 days upon assignment. National Asset Management will work accounts for up to seven years our technology, capability; staffing and unique proprietary processes allow us to continue to work accounts for the full term of credit reporting capability.
In many cases accounts that are for five years old are result out of necessity by the debtor in order to secure a loan, home or another type of financial commitment.

Read This Before Hiring A Consumer Credit Counseling Service

What is a Consumer credit counseling service?

A consumer credit counseling service is a type of agency that provides assistanceto consumers who become overwhelmed with unsecured debt. The typical consumer, due to an excess of borrowing or exposure to credit, is susceptible to facing mounting debts from excessive fees, over-consuming, over-leveraging and the fluctuation of interest rates.

A consumer credit counseling service will renegotiate an individual’s debt portfolio; these servicesare delivered to the consumer to deliver lower interest rates and monthly payments to those stricken with debt. A fundamental aspect of aconsumer credit counseling service is to provide debt consolidation techniques to the average debtor; these services enable a consumer to agglomerate their debts into one package, which will ultimately lower and streamline their monthly payment obligations.

Why should I hire a Consumer credit counseling service?

A consumer credit counseling service will attempt to make debt manageable for a consumer, while ultimately keeping these individuals out of bankruptcy. A consumer credit counseling service operates under tight regulations due to past discrepancies, where such agencies further crippled consumers as a result of hefty service fees.

That being said, if you or a loved one is facing mounting debts, it is recommended that you seek a consumer credit counseling service to renegotiate your payment obligations with your respective lenders, to lower your monthly rates through consolidation and to offer information and knowledge to prevent a similar situation from occurring in the future.

A consumer credit counseling service enables debtors to avoid bankruptcy and diminish their repayment obligationswhile impeding creditors from harassing the debtor. When a debtor agrees to operate under the terms of a credit counseling service a creditor will contact the agent or representative of the CCS and not the individual in debt.

The largest benefit an individual in debt will receive from hiring a credit counseling service is that an individual’s debt, through the inclusion of a debt professional, will be eliminated. This “clean sheet” so to speak, enables the debtor to better manage their costs and budget, while still allowing them to seek new streams of financing.

Types of Consumer credit counseling services:

A consumer credit counseling service can operate under a profit or not-for-profit business model. In the vast majority of instances; however, the average consumer will find more success with a non-profit credit counseling service. The benefit of operating with a not-for-profit credit counseling service is found in decreased fees and the fact that creditors are more willing to offer lower interest rates through a non-profit intermediary.

This characteristic will of course fluctuate based on case by case circumstance, but it is essential to evaluate consumer credit agencies based on the fees and rates they charge. It is highly recommended that you look for a consumer credit agency that possesses an excellent rating with the Better Business Bureau.

Debtor’s need to know about debt collection laws

1. As per debt Collection laws a collection agencies are not allowed to delicacy a person who is in debt with violence or force.
2. Collections agencies cannot collect a larger amount of cash than what is really owed.
3. As per Debt collection laws debtor’s information should be confidential. Collection agency has no rights to share information regarding the debt with any third party.
4. Debt collection laws make illegal selling of the debtor’s information to its marketing followers.
5. Debt collection laws do not permit debt collectors to call a defaulter from 9:00 PM to 8:00 AM.
6. Debt collectors should never hoodwink or mislead the borrower by giving fake information.

Debt collection laws have been legislated to defend the debtor’s rights to know more about Debt collection contact National Asset Management.

Know the terminology used in the debt industry in USA.

Debt Glossary

ACH (Automatic Clearing House)
Anticipatory Relief
Arbitration
Accounts Receivable Conversion (ARC)
Affirmative Defense

Back Office Conversion (BOC)
Charge-Off
Consumer Report (Also known as a Credit Report)
Consumer Reporting Agency (CRA)
Credit Report (Also known as a Consumer Report)

Data Furnisher
Debt Collector
Debt Validation
Default Judgment
Discharged/Dischargeable
Dishonored Checks
Disposable Income
Doctrine of Necessaries
Dumpster Diving

Electronic Fund Transfer (EFT)
Electronic Fund Transfer Act (EFTA)
Equifax
Experian

Fair Credit Reporting Act (FCRA)
Fair Debt Collection Practices Act (FDCPA)
Fair Debt Collection Practices Act (FDCPA)
Federal Reserve System
Federal Trade Commission (FTC)

Garnishment (Wage Garnishment)

Internet-Initiated Entry (WEB)
Itemization

Judgment Proof
JumpStart Coalition for Personal Financial Literacy

Legal Action
Letter of Reconciliations

Mini-Miranda

Necessaries of Life
Non-Performing Debts

Obligor
Office of the Comptroller of the Currency (OCC)

Plaintiff
Phishing
Point-of-Purchase (POP)

Servicemembers Civil Relief Act (SCRA)
Skimming
Skiptracing
Statute of Limitations
Surcharge

Telephone-Initiated Entry (TEL)
Tolling Statute
Tort
Trade Line
TransUnion

Uniform Commercial Code (UCC)

Validation Notice
Validation Period

Wage Garnishment

Consequences of Late Credit Cards Payments

Your credit card is an important tool but its improper use can have devastating long-term effects on your finances. Late credit card payments will affect your credit score, your credit cards and increases your interest rates. Skipping your bills might not seem like a big deal to you, but this one mistake can drag you into many hurdles for many weeks, or months or even more than that. If you miss your payments your creditors might not call you the very first day, but will certainly take action behind the scenes. The long and short term consequences of missing the payments, paying your bill late, or paying less than the minimum required payment by the due date are severe. Here are few things you face on paying late credit card payments.

Firstly, your creditor will charge you late fee every month when you pay late or skip a payment. Late fees normally range from $15 to $35. Since, a late fee is not a one-time charge, you will be charged every time you are late or miss your payments. Keep in mind the additional fees added to your balance will increase interest like any other charge you make. 

Continue…… please click on Consequences of Late Credit Cards Payments-2

Don’t for debt collectors

• Debt collector may not harass you. (threats  or harms)
• Debt collector may not oppress you.
• Debt collector may not use abuse word.( obscene or profane language)
• Cannot call phone repeatedly to annoy someone.
• Debt collector cannot use false statements for collecting a debt.
• Debt collector cannot use the word “ you will arrested if you don’t pay debt”
• Debt collector cannot sell, seize or garnish your property unless they get permitted by law.
• Debt collector cannot send false statement to anyone about you.
• Debt collector cannot charge any extra amount.

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We recommend letting a professional National Asset Management handle your outstanding debts for the most effective and efficient way.

Consumer Fraud Reporting USA

Local FBI Office to Report a Crime or Scam

A
	Alabama
		FBI Birmingham 1000 18th Street North Birmingham, Alabama 35203 birmingham.fbi.gov (205) 326-6166	FBI Mobile 200 N. Royal Street Mobile, Alabama 36602 mobile.fbi.gov (251) 438-3674 b
	Alaska
		FBI Anchorage 101 East Sixth Avenue Anchorage, Alaska 99501-2524 anchorage.fbi.gov 907-276-4441
	Arizona
		FBI Phoenix Suite 400 201 East Indianola Avenue Phoenix, Arizona 85012-2080 phoenix.fbi.gov (602) 279-5511
	Arkansas
		FBI Little Rock #24 Shackleford West Boulevard Little Rock, Arkansas 72211-3755 littlerock.fbi.gov (501) 221-9100
C
	California
		FBI Los Angeles Suite 1700, FOB 11000 Wilshire Boulevard Los Angeles, California 90024-3672 losangeles.fbi.gov (310) 477-6565	FBI Sacramento 4500 Orange Grove Avenue Sacramento, California 95841-4205 sacramento.fbi.gov (916) 481-9110
		FBI San Diego Federal Office Building 9797 Aero Drive San Diego, California 92123-1800 sandiego.fbi.gov (858) 565-1255	FBI San Francisco 450 Golden Gate Avenue, 13th. Floor San Francisco, California 94102-9523 sanfrancisco.fbi.gov (415) 553-7400
	Colorado
		FBI Denver Federal Office Building, Room 1823 1961 Stout Street, 18th. Floor Denver, Colorado 80294-1823 denver.fbi.gov (303) 629-7171
	Connecticut
		FBI New Haven 600 State Street New Haven, Connecticut 06511-6505 newhaven.fbi.gov (203) 777-6311
D
	District of Columbia
		FBI Washington Washington Metropolitan Field Office 601 4th Street, N.W. Washington, D.C. 20535-0002 washingtondc.fbi.gov (202) 278-2000
	For FBI Headquarters in Washington, D.C., see the www.fbi.gov/contactus.htm
F
	Florida
		FBI Jacksonville Suite 200 7820 Arlington Expressway Jacksonville, Florida 32211-7499 jacksonville.fbi.gov (904) 721-1211	FBI North Miami Beach 16320 Northwest Second Avenue North Miami Beach, Florida 33169-6508 miami.fbi.gov (305) 944-9101
		FBI Tampa 5525 West Gray Street Tampa, Florida 33609 tampa.fbi.gov (813) 253-1000
G
	Georgia
		FBI Atlanta Suite 400 2635 Century Parkway, Northeast Atlanta, Georgia 30345-3112 atlanta.fbi.gov (404) 679-9000
H
	Hawaii
		FBI Honolulu Room 4-230, Kalanianaole FOB 300 Ala Moana Boulevard Honolulu, Hawaii 96850-0053 honolulu.fbi.gov (808) 566-4300
I
	Illinois
		FBI Chicago 2111 West Roosevelt Road Chicago, IL 60608-1128 chicago.fbi.gov (312) 421-6700	FBI Springfield 900 East Linton Avenue Springfield, Illinois 62703 springfield.fbi.gov (217) 522-9675
	Indiana
		FBI Indianapolis Room 679, FOB 575 North Pennsylvania Street Indianapolis, Indiana 46204-1585 indianapolis.fbi.gov (317) 639-3301
K
	Kentucky
		FBI Louisville Room 500 600 Martin Luther King Jr. Place Louisville, Kentucky 40202-2231 louisville.fbi.gov (502) 583-3941
L
	Louisiana
		FBI New Orleans 2901 Leon C. Simon Dr. New Orleans, Louisiana 70126 neworleans.fbi.gov (504) 816-3000
M
	Maryland
		FBI Baltimore 2600 Lord Baltimore Baltimore, Maryland 21244 baltimore.fbi.gov (410) 265-8080
	Massachusetts
		FBI Boston Suite 600 One Center Plaza Boston, Massachusetts 02108 boston.fbi.gov (617) 742-5533
	Michigan
		FBI Detroit 26th. Floor, P. V. McNamara FOB 477 Michigan Avenue Detroit, Michigan 48226 detroit.fbi.gov (313) 965-2323
	Minnesota
		FBI Minneapolis Suite 1100 111 Washington Avenue, South Minneapolis, Minnesota 55401-2176 minneapolis.fbi.gov (612) 376-3200
	Mississippi
		FBI Jackson Room 1553, FOB 100 West Capitol Street Jackson, Mississippi 39269-1601 jackson.fbi.gov (601) 948-5000
	Missouri
		FBI Kansas City 1300 Summit Kansas City, Missouri 64105-1362 kansascity.fbi.gov (816) 512-8200	FBI St. Louis 2222 Market Street St. Louis, Missouri 63103-2516 stlouis.fbi.gov (314) 231-4324
N
	Nebraska
		FBI Omaha 10755 Burt Street Omaha, Nebraska 68114-2000 omaha.fbi.gov (402) 493-8688
	Nevada
		FBI Las Vegas John Lawrence Bailey Building 1787 West Lake Mead Boulevard Las Vegas, Nevada 89106-2135 lasvegas.fbi.gov (702) 385-1281
	New Jersey
		FBI Newark 11 Centre Place Newark, New Jersey 07102-9889 newark.fbi.gov (973) 792-3000
	New Mexico
		FBI Albuquerque 4200 Luecking Park Ave. NE Albuquerque, New Mexico 87107 albuquerque.fbi.gov (505) 889-1300
	New York
		FBI Albany 200 McCarty Avenue Albany, New York 12209 albany.fbi.gov (518) 465-7551	FBI Buffalo One FBI Plaza Buffalo, New York 14202-2698 buffalo.fbi.gov (716) 856-7800
		FBI New York 26 Federal Plaza, 23rd. Floor New York, New York 10278-0004 newyork.fbi.gov (212) 384-1000
	North Carolina
		FBI Charlotte Suite 900, Wachovia Building 400 South Tyron Street Charlotte, North Carolina 28285-0001 charlotte.fbi.gov (704) 377-9200
O
	Ohio
		FBI Cincinnati Room 9000 550 Main Street Cincinnati, Ohio 45202-8501 cincinnati.fbi.gov (513) 421-4310	FBI Cleveland Federal Office Building 1501 Lakeside Avenue Cleveland, Ohio 44114 cleveland.fbi.gov (216) 522-1400
	Oklahoma
		FBI Oklahoma City 3301 West Memorial Drive Oklahoma City, Oklahoma 73134 oklahomacity.fbi.gov (405) 290-7770
	Oregon
		FBI Portland Suite 400, Crown Plaza Building 1500 Southwest 1st Avenue Portland, Oregon 97201-5828 portland.fbi.gov (503) 224-4181
P
	Pennsylvania
		FBI Philadelphia 8th. Floor William J. Green Jr. FOB 600 Arch Street Philadelphia, Pennsylvania 19106 philadelphia.fbi.gov (215) 418-4000	FBI Pittsburgh 3311 East Carson St. Pittsburgh, Pennsylvania 15203 pittsburgh.fbi.gov (412) 432-4000
	Puerto Rico
		FBI San Juan Room 526, U.S. Federal Bldg. 150 Carlos Chardon Avenue Hato Rey San Juan, Puerto Rico 00918-1716 sanjuan.fbi.gov (787) 754-6000
S
	South Carolina
		FBI Columbia 151 Westpark Blvd Columbia, South Carolina 29210-3857 columbia.fbi.gov (803) 551-4200
T
	Tennessee
		FBI Knoxville Suite 600, John J. Duncan FOB 710 Locust Street Knoxville, Tennessee 37902-2537 knoxville.fbi.gov (865) 544-0751	FBI Memphis Suite 3000, Eagle Crest Bldg. 225 North Humphreys Blvd. Memphis, Tennessee 38120-2107 memphis.fbi.gov (901) 747-4300
	Texas
		FBI Dallas One Justice Way Dallas, Texas 75220 dallas.fbi.gov (972) 559-5000	FBI El Paso 660 S. Mesa Hills Drive El Paso, Texas 79912-5533 elpaso.fbi.gov (915) 832-5000
		FBI Houston 2500 East TC Jester Houston, Texas 77008-1300 houston.fbi.gov (713) 693-5000	FBI San Antonio Suite 200 U.S. Post Office Courthouse Bldg. 615 East Houston Street San Antonio, Texas 78205-9998 sanantonio.fbi.gov (210) 225-6741
U
	Utah
		FBI Salt Lake City Suite 1200, 257 Towers Bldg. 257 East, 200 South Salt Lake City, Utah 84111-2048 saltlakecity.fbi.gov (801) 579-1400
V
	Virginia
		FBI Norfolk 150 Corporate Boulevard Norfolk, Virginia 23502-4999 norfolk.fbi.gov (757) 455-0100	FBI Richmond 1970 E. Parham Road Richmond, Virginia 23228 richmond.fbi.gov (804) 261-1044
	For Northern Virginia, contact the Washington Field Office. http://washingtondc.fbi.gov
W
	Washington
		FBI Seattle 1110 Third Avenue Seattle, Washington 98101-2904 seattle.fbi.gov (206) 622-0460
	Wisconsin
		FBI Milwaukee Suite 600 330 East Kilbourn Avenue Milwaukee, Wisconsin 53202-6627 milwaukee.fbi.gov (414) 276-4684

What are Creditor’s Rights?

When a debtor fails to pay his or her debts, the creditors who are owed money have the right to collect what is owed to them under creditor’s rights law. When a debtor doesn't pay what they owe, due to bankruptcy or for any other reason, the creditors have a legitimate right to take some collection action and take steps to recover monies paid out and not paid back. The creditor has the right to hire an attorney that specializes in lawsuits against debtors. Initially most creditors try to contact their debtors through notices asking for payment and then hire a collection agency to try to collect the debt through both letters and phone calls.

Collection agencies work under the laws laid by the Fair Debt Collection Practices Act (FDCPA). They must follow the specific laws inscribed in FDCPA and prohibit deceptive practices. Under the FDCPA the collection agencies have the right to make repeated calls and send demand letters for payments to debtors. The letters covered in envelopes must not mention a collection agency and the collectors making the phone calls can only discuss the debt with the debtor. If a third party answersthe phone the collector cannot reveal any information about the debt.

Creditors have the right to approach the court and file a case against a debtor. The creditors also have specific bankruptcy creditor’s rights. Once a judgment is obtained, the creditor can enforce the judgment by claiming enough of the debtor's property to cover the debt, usually with the assistance of the local sheriff. The sheriff may actually seize the property or will record the creditor’s lien against the property. For example in a case of real estate, the sheriff can arrange for sale of the property, the proceeds of which are used to satisfy the debt.

There are also other processes available which depends whether the debt is secured or unsecured. Mainly, secured debt always involves property, whereas unsecured debt doesn’t. In secured debts the borrowers pledges some assets as collateral to secure it. For instance, if a car loan agreement is secured and the debtor fails to make the payments, the lender can take back the car to cover any missed lease payments remaining on the debt. While an unsecured debt is not collateralised by a lien on specific assets.

If the quoted tactics are not successful to recover debts, the creditors have the right to initiate an involuntary bankruptcy proceeding. If the court accepts the petition, the debtor may be required to liquidate their assets to pay off its debts or may be able to file a reorganization plan that sorts out how theirdebts will be paid.

Wage Garnishment

Wage garnishment is when an employer is required to withhold a portion of an individual's earnings to pay off a debt. The federal law that regulates wage garnishment is Title III of the Consumer Credit Protection Act (CCPA). Title III of the Consumer Credit Protection Act (CCPA) is administered by the Wage and Hour Division (WHD). Title III prohibits an employer from discharging an employee because his or her earnings have been subject to garnishment for any one debt. However if the employee has been subject to garnishment for a second debt, Title III does not protect an employee from discharge. Title III also protects employees by limiting the amount of earnings that may be withheld from a paycheck. For child support, bankruptcy or federal or state tax payments Title III permits a greater amount to be garnished from an employee's wages.

Most states follow the Federal laws regarding wage garnishment. However if a state wage garnishment law differs from Title III, the employer must observe the law resulting in the smaller garnishment, or prohibiting the discharge of an employee because his or her earnings have been subject to garnishment for more than one debt. Please check out your state website for more information on state laws regarding wage garnishments.

The Use of Social Networking in Debt Collection

Now a day’s people don’t just write a letter or pick up the phone get in touch with someone. They have several new options with the technological advances in communication including email, social networking sites, blogging, text messaging etc. Debt collection agencies are taking advantage of these social networking sites like Facebook, MySpace and LinkedIn to locate debtors. Debt collectors are using these websites to locate debtors they could not track through phone directories and other resources. Although they have this new resource, debt collectors must still comply with the Fair Debt Collection Practices Act (FDCPA).